Our Thoughts on US markets and the Gold market.
VanEck Vectors Gold Miners ETF
GDX made a shooting star last night, it’s quite overbought and gives us a good opportunity to short and use the top of the wick as our stop loss. Target would be a retest of the breakout at $32 and a further target of $30, the first Fibonacci level. Gold bullish sentiment back to 75 which is quite high.
Chart below shows massive influx of buyersoc into Gold statistically extremes correlate well with tops (even if minor).
Invesco QQQ Trust Nasdaq ETF
QQQ (NASDAQ ETF) has had a strong retrace of the big drop. Short if we break the first fib level at $209, that would target $200 for us. With all the tech heavy weights reporting next week we think this is possible. Use $214 as a stop loss.
Silver
Silver is between 2 zones trading in the middle of a range. A break above yesterday’s highs can be used as a long entry with a stop at $15, and a break below $15 can be shorted with as top at $15.75. Use a 1 to 3 risk-reward for your target exit.
VanEck Vectors Oil Services ETF
OIH is building a bottom here. We don’t think this will setup for a trade this week but put this on your watchlist as a good oil play in weeks ahead.
*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.
